Proceedings of the 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)

Harmonization of Accounting Practices: The Case of Accounting for PPE in Lithuanian Non-Listed Companies

Authors
Renata Legenzova, Asta Gaigalienė, Inesa Vilkaitė
Corresponding Author
Renata Legenzova
Available Online December 2016.
DOI
https://doi.org/10.2991/icaat-16.2016.29How to use a DOI?
Keywords
Accounting harmonization, accounting policy, property plant and equipment (PPE), non-listed companies
Abstract
Accounting harmonization is aimed enhance accounting and information disclosure comparability across and within the countries and by decreasing de jure and de facto variations of such practices and disclosures. Non-listed companies comprising more than 90% of all the companies in Lithuania and the EU receive very little attention in accounting harmonization related research - such research primarily address issues related to IFRS adoption in listed companies. This paper is aimed to gather the evidence on the accounting practices of Lithuanian non-listed companies in the area of accounting for PPE and to assess the level of their harmonization. To collect information a survey method has been employed and representative sample of Lithuanian non-listed companies' population had been surveyed. Results of the survey reveal that 89.46% of non-listed companies use cost method to measure PPE after initial recognition; 44.5% - set a minimum recognition value from 500 to 1000 EUR; 88.5% - use the straight-line depreciation method; and 68.2% set a residual value of 1 EUR. In general, the level of harmonization of accounting practices in Lithuanian non-listed companies is above average. Comparability of accounting information across non-listed companies from within-country perspective is not accomplished.
Open Access
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Proceedings
5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)
Part of series
Advances in Economics, Business and Management Research
Publication Date
December 2016
ISBN
978-94-6252-261-9
ISSN
2352-5428
DOI
https://doi.org/10.2991/icaat-16.2016.29How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Renata Legenzova
AU  - Asta Gaigalienė
AU  - Inesa Vilkaitė
PY  - 2016/12
DA  - 2016/12
TI  - Harmonization of Accounting Practices: The Case of Accounting for PPE in Lithuanian Non-Listed Companies
BT  - 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)
PB  - Atlantis Press
SN  - 2352-5428
UR  - https://doi.org/10.2991/icaat-16.2016.29
DO  - https://doi.org/10.2991/icaat-16.2016.29
ID  - Legenzova2016/12
ER  -